Mr. Devane’s gold commercial doesn’t tell you everything!

Gold_Digger_-_William_Devane

Actor William Devane is back “in character” on television ads in his most recent gold commercial. 

Here is why it is so dangerous to poor Grandma and Grandma:

First, the ad shows the US Debt clock reminding us of the current financial crisis we are in. (That part is real) Then a quick fade to rioting in the street to let us see what’s coming next. Or not. 

Next, the ad shows money being printed like there is no tomorrow. (Trust me, there is always going to be a tomorrow) Next up — we get induced by a cozy fireplace scene while Billy drops those gold pieces one by one from his hand. We hear the clanking as we get told “I even like the feel of gold”…  whatever.

It is the last part I find fault with. We are told “You can also put your gold in a retirement IRA” as the camera next shows him placing his stack of gold coins in  a wall safe and covering it back up with a fake picture front. You can’t miss the gold bars too in the safe, alluding to how safe it is storing your gold at home is! 

Are you kidding me? 

People I know bought large quantities of gold coins or bullion and were so worried after delivery that someone was going to steal it – they had to go put it in bank deposit boxes! Recently, one of those brand name banks just hit the “D” grade by Weiss Bank ratings…  What do you do next with it – bury it?

The cunning William shuts the wall safe door while stealing a popular credit card slogan as he says “What’s in your safe?”  Hopefully not much if YOU told anyone how excited you were to take delivery of physical gold at home…

The devilish side of this TV actor parts way with truth, at least regarding my two points. First, storing valuable assets at home will help you give you an ulcer quickly. Second, you can’t put your IRA into precious metals holdings and keep the metals at home. The IRS forbids it!

As Grandpa and Grandma most likely are pushing the remote control volume up to hear every word, remember that Grandpa got fooled before and now – they both may get fooled again, since they want their former lifestyle back! (Seems Grandpa lost about 1/2 of his IRA account in 2008 and Grandma forced him to put what was left in the local bank at a measly 1% a year return)

The commercial doesn’t disclose this stuff I am bringing up. And they should. No, I’m not saying that some IRA money shouldn’t be invested this way. But, I am saying that disclosure is missing in these ads no matter who is hawking gold or silver coins or bullion bars in these slick commercials!

Make no mistake — Grandma and Grandpa will never get to touch those coins if they agree to put their IRA money into a gold IRA. No clanking coin sounds. No   shiny metal coins to appreciate how they feel in the hands.

And, if bought online, they can’t verify the products hawked by these gold digger salesman are even real! They can only find true value of the merchandise when they later decide to sell.  My own father got fooled paying about $2,000 more than market value for two gold buffalo coins a few years ago. Thank goodness he didn’t sell the farm and put it all in overpriced numismatic coins that often fall down to values related to “gold content” when all hell breaks loose. Buy close to “melt” value or tell them no!

Now, perhaps you are that Grandma or Grandpa getting “bug eyed” over theseGrandpa_and_Grandma_Staying_Home_A_Lot  ads wanting you to invest in gold with your current IRA. Or the kids of parents who may be getting overly influenced by ads that bait and switch. Even the free gifts offered are that final “straw” that can make a senior break down and call the toll-free number. After calling, you can pretty well count on a transaction taking place soon after since professional phone salesman forsake Dodd-Frank U.S. law regarding “knowing your client” and shoot you a deal that sounds impossible to say no to. And urge you to “buy” today to get the deal that will be gone tomorrow.

I sold gold funds in the mid 80’s as a financial planner. I put 10-20% into these alternative type investments for clients and watched the money go nowhere for about a decade! And, another decade passed before we saw a “lift” in gold and other precious metal pricing.

Please, get another opinion if this describes you. And, if this describes your parents, call them and ask them to run it by you before they do something drastic with their remaining retirement savings accounts.

Do I have a plan for clients that makes more sense? Yes! Stay tuned and you will find out where most of the retirement money is going as it exits the doors of banks and brokerage firms still teetering on financial conditions that are just about as bankrupt as possible — if all “worthless” assets had to suddenly be accounted for in their balance sheets! 

You are about to discover credible IRA investment options not commonly known or promoted by the investment advisors. Safety is the key, while still investing for growth potential. Never forget — Mr. Devane is just a paid “ACTOR” and so are all the other Hollywood “B” actors who hawk products on television! Pay them their fee, and they will say just about anything to convince you to buy something that may be the last thing on earth you really need. Keep the salt shaker handy next time you hear a TV or radio ad that sounds too good to be true.

M.D. Anderson, President, AZCLDP, Accountant

Financial Strategies, Inc., Chandler, AZ

&

IRA Director, Realtor

RE/MAX DIAMOND, Mesa, AZ

Toll Free: 1-800-782-2806

Now that you have called Grandma & Grandpa to tell them not to “Get Fooled Again”, sit back and enjoy this Re-mastered full length Version of the song.

 

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